Risks Loom for U.S.
As Economy Booms

Edited by Hugo Dixon

Updated Oct. 16, 2003 12:01 a.m. ET

The good times are back. Stock markets are at a 16-month high, bonds are taking a beating, commodity prices are soaring and investment banks are hiring again. Lehman Brothers Holding Inc. is offering $10,000 (&euro;8,523) bonuses to employees that refer potential recruits. Russia has even made it to investment grade. Signs that policy makers have managed to reflate the world economy are everywhere to be seen.